REUTERS BRUSSELS, Oct. 19 - In a dispute over aircraft production subsidies between Europe and the US, the European Union should be able to formally obtain the right to tax $4 billion a year on imports from the US next week, according to a World Trade Organization (WTO) document on Monday.
The EU has obtained the right to retaliate against the dispute over US subsidies to aircraft manufacturer Boeing this month. This is likely to intensify a record trade dispute between the two countries. This dispute has already prompted the US to impose tariffs on EU products.
According to WTO regulations, the EU is required to formally notify the Dispute Settlement Body (DSB) of plans to levy tariffs. According to the schedule announced by DSB on Monday, the EU plans to give a briefing when it holds its next meeting on October 26.
This does not necessarily mean that the EU will immediately implement tariff measures. The European Commission must also hold discussions with the 27 EU governments on this issue.
The US government said that the EU has no legal basis for imposing tariffs because the US side has already cancelled the disputed tax reduction measures. Boeing expressed support for this, saying it has complied with the WTO ruling.
US President Trump threatened that if the EU imposes taxes on US goods, the US side will also “fight back.” (complete)
****If you want to refer to the original report, please click to read it****
(Compiled by Zhang Mingjun/Zheng Yin, Reviser Li Chunxi/Bai Yun)
(yin.zheng@thomsonreuters.com; 010-56692086;)
The EU has obtained the right to retaliate against the dispute over US subsidies to aircraft manufacturer Boeing this month. This is likely to intensify a record trade dispute between the two countries. This dispute has already prompted the US to impose tariffs on EU products.
According to WTO regulations, the EU is required to formally notify the Dispute Settlement Body (DSB) of plans to levy tariffs. According to the schedule announced by DSB on Monday, the EU plans to give a briefing when it holds its next meeting on October 26.
This does not necessarily mean that the EU will immediately implement tariff measures. The European Commission must also hold discussions with the 27 EU governments on this issue.
The US government said that the EU has no legal basis for imposing tariffs because the US side has already cancelled the disputed tax reduction measures. Boeing expressed support for this, saying it has complied with the WTO ruling.
US President Trump threatened that if the EU imposes taxes on US goods, the US side will also “fight back.” (complete)
****If you want to refer to the original report, please click to read it****
(Compiled by Zhang Mingjun/Zheng Yin, Reviser Li Chunxi/Bai Yun)
(yin.zheng@thomsonreuters.com; 010-56692086;)